Overview
Nebraska uses a progressive income tax system with its own Form W-4N. The state recently reduced its tax rates as part of ongoing tax reform. Nebraska also has provisions for nonresident employees and a small employer threshold.
What Makes Nebraska Unique: Nebraska has a progressive income tax with a top rate of 5.84% (decreasing through phased reform). Employees use Nebraska Form W-4N for state withholding.
State Income Tax (SIT)
Nebraska’s progressive income tax uses the state’s percentage method with brackets that vary by filing status. For 2026, each withholding allowance is worth $2,440 and the supplemental rate is 3.5%. Employees complete Form W-4N with their filing status and total allowances. Nonresident employees may need to complete Form 9N for multi-state withholding.
| Tax Structure | Progressive with brackets |
| State Withholding Form | Form W-4N |
| Filing Statuses | S, M |
| Allowance Value | $2,440 per allowance |
| Supplemental Rate | 3.5% |
Supplemental Wages
Nebraska supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 3.5%.
Employer State Unemployment Tax (SUTA)
Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.25%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 1.25% |
| Rate Assignment | Experience-rated; assigned annually by the state |
How to Set Up Nebraska Payroll Withholding
Follow these steps to begin withholding Nebraska payroll taxes for your employees:
- Obtain your Federal EIN at irs.gov
- Register with the Nebraska Department of Revenue at revenue.nebraska.gov
- Register for SUTA with the Nebraska Department of Labor at dol.nebraska.gov
- Submit a Netchex tax team request to enable Nebraska SIT and SUTA
- Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
- Configure any additional tax settings in the employee profile
Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Nebraska payroll taxes on your behalf.
Nebraska Payroll Tax Filing Deadlines
The following are general filing and deposit deadlines for Nebraska payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Nebraska Department of Revenue.
| Tax | Deposit Frequency | Typical Due Date |
| SIT Withholding | Monthly or Semi-monthly | 15th of following month (monthly) |
| Annual Reconciliation (W-3N) | Annual | January 31 |
| SUTA | Quarterly | April 30, July 31, Oct 31, Jan 31 |
Note: Deadlines are subject to change. Always confirm current requirements directly with Nebraska Department of Revenue at https://revenue.nebraska.gov/businesses/withholding.
Resources & Links
The following official resources will help you stay current on Nebraska payroll tax requirements:
Frequently Asked Questions: Nebraska Payroll Taxes
What form do Nebraska employees complete?
Employees complete Nebraska Form W-4N, the Nebraska Employee’s Withholding Allowance Certificate.
What is Nebraska’s top income tax rate?
Nebraska’s top income tax rate is 5.84% (2024), with phased reductions planned.
What is Nebraska’s SUTA wage base?
Nebraska’s SUTA wage base is $9,000 per employee per year. Verify at dol.nebraska.gov.
Does Nebraska have local payroll taxes?
No. Nebraska does not impose local payroll taxes.
What is Nebraska’s supplemental withholding rate?
Nebraska uses the employee’s regular withholding rate for supplemental wages.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to the Resources & Links section above.
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